Readily Convertible Assets (Shares)

Re: Re:Shares

The shares will be awarded for joining the company.

Re: Re:Shares

I would speak to the revenue about it. After all they are going to need convincing at some point.

Are the shares as compensation for a low rate ?

Re:Shares

Depends on how you're working for them

- as a contractor then it's part of your sales so no PAYE as you don't get it personally, your company does

- as an employee then it depends on where you're tax resident. If UK tax resident then the value is $2.33 as that's the open market value.

- as a self-employed contractor working in the UK then it's part of sales again and you're taxed as if they were worth $2.33

Hi,

I have been offered free shares in a company which I shall be working for.

The company is a subsidiary of a US company. The shares will be in the US company.

The shares are not ‘readily convertible assets’. I.e. They can not be traded on any open market.

The nominal value of the shares is $0.01.
Private investors are currently paying $2.33 per share. The company is not worth this much as it is currently a service company with low turnover. The investors are expecting the company to do well in the future.

I understand that the employer would not have to operate PAYE on these shares as they are not ‘readily convertible assets’. I would have to pay income tax on them. I believe I would not have to pay NI. Is this correct?

For self assessment income tax purposes, how do I value the shares I have received? Do I say they are worth $0.01, $2.33, or somewhere in-between, based upon the true value of the company (whatever that is)?

I need to decide if I want these shares quickly, so need to understand any tax liability. Please can someone out there help?

Thanks,

Paul.